China Merchants Energy Shipping (CMES) expects its net profit attributable to shareholders for the period between January 1 and September 30 to be 400% to 430% higher compared to the same period a year earlier, the Shanghai-listed company said in a stock filing.
According to preliminary statistics of the company’s financial department, CMES will record around CNY 313 million (USD 49.5m) net profit in the first three quarters of 2015.
The fivefold net profit increase year-on-year is expected largely due to the booming tanker market and revenue accumulated through China VLCC, a joint venture between CMES and Sinotrans & CSC.
Back in September, CMES signed a Contract of Affreightment (COA) for a period up to 25 years with Brazilian mining giant Vale.
The company also expects its financial results for the period to be positively affected by a CNY 741 million (USD 117.2 million) subsidy received from the Chinese government in September for old tonnage scrapping and fleet renewal projects.
World Maritime News Staff